The month of March pounded Gold over $100 to $1674 an oz. to date. Many have given technical reasons for this drop from profit taking to lessening global risk with the resolution of the EU Greek Dept crisis. What most have missed is one of the biggest stories of Leap Day and how it pertains to golds current retraction. In what most took as election year grandstanding, perennial Presidential candidate Ron Paul took Fed Chair Ben Bernanke to task over the devaluation of the Dollar & real inflation. (see video here)
Ron Paul has been on the record for over two decades attempting to return the Dollar to a Gold or Silver standard. He is also a huge proponent of owning physical Gold as a portion of your investment portfolio. These are all things that fly in the face of Bernanke’s support of the fiat system of currency we are currently under. To say these guys are at opposite ends of the discussion is putting it mildly.
Bernanke, in what most missed as a shot across the bow to Ron Paul’s Leap Day ambush, failed to make any mention, hint or allusion to a future QE3 during a speech on Wednesday this week. Gold took another beating as many investors believe that the Fed is holding the economy on the right track. So, they sold major positions in Gold. Silver is mirroring Gold over the last week, yet it still remains firmly entrenched in the low 30’s.
The take away from this is very simple. All metals are down yet the real risk has not left the building. While Bernanke & Paul knife fight around the room, take advantage of the lower prices by adding to your Tangible Asset Portfolio. A conservative 10% to aggressive 20% of your net worth is our recommended goal for your overall investments.